Required information [The following information applies to the questions displayed below.] Matthew (48 at year-end) develops cutting-edge technology for SV Inc., located in Silicon Valley. In 2021, Matthew participates in SV's money purchase pension plan (a defined contribution plan) and in his company's 401(k) plan. Under the money purchase pension plan, SV contributes 15 percent of an employee's salary to a retirement account for the employee up to the amount limited by the tax code. Because it provides the money purchase pension plan, SV does not contribute to the employee's 401(k) plan. Matthew would like to maximize his contribution to his 401(k) account after SV's contribution to the money purchase plan. (Leave no answers blank. Enter zero if applicable.) d. Assume Matthew's annual salary is $65,500 and that he is 54 years old at the end of 2021. What amount can Matthew contribute to his 401(k) account in 2021? Matthew's contribution to 401(k) account $ 29,325

CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter15: Choice Of Business Entity—other Considerations
Section: Chapter Questions
Problem 47P
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Required information
[The following information applies to the questions displayed below.]
Matthew (48 at year-end) develops cutting-edge technology for SV Inc., located in Silicon Valley. In 2021, Matthew
participates in SV's money purchase pension plan (a defined contribution plan) and in his company's 401(k) plan.
Under the money purchase pension plan, SV contributes 15 percent of an employee's salary to a retirement
account for the employee up to the amount limited by the tax code. Because it provides the money purchase
pension plan, SV does not contribute to the employee's 401(k) plan. Matthew would like to maximize his
contribution to his 401(k) account after SV's contribution to the money purchase plan. (Leave no answers blank.
Enter zero if applicable.)
d. Assume Matthew's annual salary is $65,500 and that he is 54 years old at the end of 2021. What amount can Matthew contribute to
his 401(k) account in 2021?
Matthew's contribution to 401(k) account
$
29,325
Transcribed Image Text:Required information [The following information applies to the questions displayed below.] Matthew (48 at year-end) develops cutting-edge technology for SV Inc., located in Silicon Valley. In 2021, Matthew participates in SV's money purchase pension plan (a defined contribution plan) and in his company's 401(k) plan. Under the money purchase pension plan, SV contributes 15 percent of an employee's salary to a retirement account for the employee up to the amount limited by the tax code. Because it provides the money purchase pension plan, SV does not contribute to the employee's 401(k) plan. Matthew would like to maximize his contribution to his 401(k) account after SV's contribution to the money purchase plan. (Leave no answers blank. Enter zero if applicable.) d. Assume Matthew's annual salary is $65,500 and that he is 54 years old at the end of 2021. What amount can Matthew contribute to his 401(k) account in 2021? Matthew's contribution to 401(k) account $ 29,325
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